"The US market has been the unambiguous leader in this current
equity cycle," noted Barclays in new research. "[W]ith the
constraints elsewhere beginning to lift, we think performance
will now favour non-US markets. Funds are certainly beginning to
move in that direction and we think there is a large “gap” to
fill."

The analysts included a chart showing how U.S. stocks have
sharply outperformed foreign markets over the last two decades.

"On the US side, the market is set to face a lessening in support
from monetary policy," they added. "Our economists expect the Fed
to begin reducing its rate of Treasury purchases in March 2014,
while 10-year yields are forecast to rise to 3.5 % by end-2014.
This forecast backup in US yields is expected to exceed those of
the euro area, UK and Japan. We do not anticipate that this turn
in the policy cycle will signal a major “top” for the market, but
it will introduce more uncertainty and shift the focus to
earnings growth as the route to higher stock prices."